Independent Review

Loan Book Reviews

A credit unions loan book is the core income-generating asset and a key component in achieving and maintaining long term viability.

While there is a requirement to undertake a loan book review to satisfy a regulatory requirement and determine a provision of potential future losses due to bad debts, many credit unions seek an independent assessment to better understand the underlying quality, risk profile, adequacy of provisioning and robustness of the provisioning methodology.

Our independent loan book reviews provide a deeper, risk-focused analysis. We assess:

• The adequacy and appropriateness of provisioning
• Loan underwriting and credit assessment practices
• Arrears management and credit control processes
• Compliance with regulatory and accounting standards
• The effectiveness of lending policies and procedures

Following our review, we present a comprehensive report to the Board outlining findings, risk exposures, and practical recommendations to strengthen the overall health and resilience of the loan book.

Post Merger Reviews

A transfer of engagements, or merger, is a complex process that assesses the business case, the asset quality, the governance structures and the operational readiness of the credit unions involved. Following the completion of the merger, credit union management and Boards will focus on integrating processes in the enlarged credit union.

Very often, credit unions may want to engage in further merger projects or the Central Bank may seek assurances that certain frameworks in the enlarged credit union are embedded and mature.

RBK leverages its specialist sector expertise to conduct independent post-merger evaluations. We assess:

• Financial performance and sustainability of the merged entity
• Integration of policies, procedures, and internal controls
• Effectiveness of governance, risk management, compliance, and internal audit functions
• Delivery of projected synergies and strategic objectives

Our review provides assurance to the Board and regulator while identifying opportunities to strengthen the newly integrated organisation.

Corporate Governance Reviews

Strong corporate governance underpins stable and sustainable credit unions.

Through our deep understanding of the credit union sector, we have developed a detailed process to undertake an independent review of governance practices. This review will assist the Board of Directors to:

• Clearly understand and discharge their statutory obligations
• Define and strengthen Board and committee roles
• Establish and update required governance policies and procedures
• Identify weaknesses or gaps in existing frameworks
• Ensure governance practices align with documented policies

Promote continuous improvement and regulatory compliance